Upside case
Bull case
$37+111.8%
SOJE would need investors to value it at roughly 8x earnings — about 4x more generous than today's 4x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewNo CoverageUpdated —
Southern Company (The) Series 2 (SOJE) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Mixed
Covering
—
analysts
0 bullish · 0 bearish · 0 covering SOJE
Strong Buy
0
Buy
0
Hold
0
Sell
0
Strong Sell
0
Consensus Target
—
— vs today
Scenario Range
$7 – $37
Model bear to bull value window
Coverage
—
Published analyst ratings
Valuation Context
3.8x
Forward P/E · Market cap $19.3B
SOJE price targets
Three scenarios for where SOJE stock could go
Current
~$17
Confidence
48 / 100
Updated
—
Where we are now
Current · $17
Bear
$7
Base
$20
Bull
$37
Market caseClosest to today
Base case
$20+18.3%
At 4x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$7-61.9%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push SOJE down roughly 62% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Southern Company (The) Series 2
SOJE · NYSEUtilitiesRegulated ElectricDecember year-end
Southern Company is a major regulated electric utility holding company that generates, transmits, and distributes electricity primarily across the southeastern United States. It makes money through regulated utility operations — which provide stable revenue from ratepayers in Alabama, Georgia, Florida, and Mississippi — supplemented by wholesale power sales through its Southern Power segment and natural gas distribution in several states. Its key advantage is its regulated monopoly status in its core service territories, providing predictable cash flows and high barriers to entry.
Market Cap
$19.3B
Revenue TTM
$29.6B
Net Income TTM
$4.3B
Net Margin
14.7%
SOJE Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
64%Exceptional
12 quarters tracked
Revenue Beat Rate
73%Exceptional
vs consensus estimates
Avg EPS Surprise
+4.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 2 of 4Q2 2025
EPS
$1.21/$1.20
Revenue
$7.8B/$7.2B
Q3 2025
EPS
$0.79/$0.88
Revenue
$7.0B/$6.4B
Q4 2025
EPS
$1.54/$1.51
Revenue
$7.8B/$7.6B
Q1 2026
EPS
$0.55/$0.56
Revenue
$7.0B/$6.1B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $1.21/$1.20 | +0.8% | $7.8B/$7.2B | +8.7% |
| Q3 2025 | $0.79/$0.88 | -9.3% | $7.0B/$6.4B | +9.6% |
| Q4 2025 | $1.54/$1.51 | +2.0% | $7.8B/$7.6B | +2.7% |
| Q1 2026 | $0.55/$0.56 | -1.4% | $7.0B/$6.1B | +14.5% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$31.4B
+6.4% YoY
FY2
$33.5B
+6.6% YoY
EPS Outlook
FY1
$4.28
+9.2% YoY
FY2
$4.64
+8.5% YoY
Trailing FCF (TTM)-$3.3B
FCF Margin: -11.1%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
SOJE beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
SOJE Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $10.1B
Product Mix
Latest annual revenue by segment or product family
Southern Company Gas
50.0%
+13.2% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Southern Company Gas is the largest disclosed segment at 50.0% of FY 2025 revenue, up 13.2% YoY.
SOJE Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $73 — implies +323.0% from today's price.
Upside to Fair Value
323.0%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
SOJE
4.4x
vs
S&P 500
25.2x
83% discount
vs Utilities Trailing P/E
SOJE
4.4x
vs
Utilities
19.7x
78% discount
vs SOJE 5Y Avg P/E
Today
4.4x
vs
5Y Average
6.3x
30% discount
Forward PE
3.8x
S&P 500
19.1x
-80%
Utilities
17.2x
-78%
5Y Avg
—
—
Trailing PE
4.4x
S&P 500
25.2x
-83%
Utilities
19.7x
-78%
5Y Avg
6.3x
-30%
PEG Ratio
0.75x
S&P 500
1.75x
-57%
Utilities
1.73x
-56%
5Y Avg
—
—
EV/EBITDA
6.3x
S&P 500
15.3x
-59%
Utilities
11.5x
-46%
5Y Avg
7.9x
-21%
Price/FCF
—
S&P 500
21.3x
—
Utilities
15.4x
—
5Y Avg
25.0x
—
Price/Sales
0.7x
S&P 500
3.1x
-79%
Utilities
2.2x
-70%
5Y Avg
0.8x
-21%
Dividend Yield
15.75%
S&P 500
1.88%
+739%
Utilities
3.07%
+413%
5Y Avg
13.80%
+14%
| Metric | SOJE | S&P 500 | Utilities | 5Y Avg SOJE |
|---|---|---|---|---|
| Forward PE | 3.8x | 19.1x-80% | 17.2x-78% | — |
| Trailing PE | 4.4x | 25.2x-83% | 19.7x-78% | 6.3x-30% |
| PEG Ratio | 0.75x | 1.75x-57% | 1.73x-56% | — |
| EV/EBITDA | 6.3x | 15.3x-59% | 11.5x-46% | 7.9x-21% |
| Price/FCF | — | 21.3x | 15.4x | 25.0x |
| Price/Sales | 0.7x | 3.1x-79% | 2.2x-70% | 0.8x-21% |
| Dividend Yield | 15.75% | 1.88% | 3.07% | 13.80% |
SOJE trades above S&P 500 benchmarks on 0 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolSOJE Financial Health
Verdict
Exceptional
SOJE earns 24.6% operating margin on regulated earnings, 15.8% dividend yield. Utilities carry higher leverage than industrials as a structural feature of the business model.
Regulated Operations
Revenue, regulated margins, and earnings
Revenue (TTM)
Trailing-twelve-month sales base
$29.6B
Revenue Growth
TTM vs prior year
+10.6%
Operating Margin
Operating income divided by revenue
24.6%
Net Margin
Net income divided by revenue
14.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.91
Operating Margin
Operating income over revenue — primary regulated earnings signal
24.6%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
5.3%
ROA
Return on assets, trailing twelve months
2.9%
Cash & Equivalents
Liquid assets on the balance sheet
$1.6B
Net Debt
Total debt minus cash
$64.2B
Debt Serviceability
Net debt as a multiple of annual free cash flow
—
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
11.4%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
15.8%
Dividend
15.8%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$2.72
Payout Ratio
Share of earnings distributed as dividends
69.5%
Shares Outstanding
Current diluted share count
1.1B
All figures from the trailing twelve months. Utilities operate with structural leverage (3–5× net debt/FCF) due to regulated, predictable cash flows.
Open full ratios pageSOJE Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Insider Selling
Key executives at Southern Company have sold $27.5 million worth of shares over the past year, while only purchasing $10.6 million. This significant open-market selling may indicate negative sentiment from those within the company.
High Risk
Market Sentiment
The near and mid-term market sentiment for Southern Company is weak, which could negatively impact its long-term outlook. This prevailing sentiment may lead to increased selling pressure on the stock.
High Risk
Interest Rate Sensitivity
Southern Company relies heavily on debt financing for its capital-intensive projects. Rising interest rates could significantly increase borrowing costs, adversely affecting the company's profitability.
Medium
Downside Risk
There are elevated downside risks for Southern Company due to a lack of additional long-term support signals. This absence of support could lead to further declines in stock price.
Medium
Regulatory and Industry Risks
As a utility company, Southern Company is subject to various regulatory changes and environmental regulations. Shifts in energy demand and technology can also impact its operations and profitability.
Lower
Past Performance
The stock's Sharpe ratio over the past five years is -1.1560, indicating below-average performance compared to its peers. This metric suggests that the stock has not provided adequate returns relative to its risk.
Lower
Volatility
While Southern Company generally exhibits controlled movements and good liquidity, there can be daily price fluctuations. These fluctuations may introduce a level of risk for short-term investors.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why SOJE Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Stable Dividend Yield
SOJE offers a consistent annual dividend of $1.05 per share, translating to a yield of approximately 5.97%. This reliable income stream makes it an attractive option for income-seeking investors.
Analyst Price Targets Indicate Upside
32 analysts have set a 12-month price target for SOJE, averaging $18.63 USD, which suggests a potential upside of about 6.31% from the current price of $17.52 USD. Some analysts have even established higher targets, with the highest being $21.61 USD.
Defensive Utilities Sector Position
As a holding company in the essential utilities sector, Southern Company benefits from the stability associated with this industry. The consistent demand for electricity helps the company perform relatively well even during economic downturns.
Positive Technical Signals
Recent technical analyses have indicated favorable signals, with moving averages generating buy signals from both short and long-term perspectives. A buy signal was also issued from a pivot bottom point in late March 2026, contributing to a price increase.
Favorable Risk-Reward Setup
One analysis highlights an exceptional risk-reward potential of 13.6:1, targeting a 3.9% gain with only a 0.3% risk. This attractive setup suggests a compelling opportunity for investors.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
SOJE Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$17.26
52W Range Position
82%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$5.98
+188.6% from the low
52-Week High
$19.74
-12.6% from the high
1 Month
0.00%
3 Month
-5.27%
YTD
-4.1%
1 Year
-2.2%
3Y CAGR
-4.9%
5Y CAGR
-7.4%
10Y CAGR
-3.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
SOJE vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
3.8x
vs 18.7x median
-80% below peer median
Revenue Growth
+6.4%
vs +5.7% median
+13% above peer median
Net Margin
14.7%
vs 15.4% median
-5% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
SOJ SOJE Southern Company (The) Series 2 | $19.3B | 3.8x | +6.4% | 14.7% | — | — |
NEE NEE NextEra Energy, Inc. | $198.9B | 23.6x | +9.1% | 29.3% | Buy | +2.9% |
DUK DUK Duke Energy Corporation | $97.7B | 18.7x | +2.4% | 15.4% | Hold | +7.9% |
D D Dominion Energy, Inc. | $54.2B | 17.2x | +5.7% | 13.5% | Hold | +7.5% |
AEP AEP American Electric Power Company, Inc. | $72.0B | 20.9x | +6.3% | 16.5% | Buy | +2.8% |
EXC EXC Exelon Corporation | $46.1B | 15.8x | +3.7% | 11.2% | Hold | +9.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
SOJE Dividend and Capital Return
SOJE returns 15.8% total yield, led by a 15.75% dividend.
Dividend WatchFCF Unknown
Total Shareholder Yield
15.8%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
15.75%
Payout Ratio
69.5%
How SOJE Splits Its Return
Div 15.75%
Dividend 15.75%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.72
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
0.0%
5Y Div CAGR
1.4%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
1.1B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.53 | — | — | — |
| 2025 | $1.05 | 0.0% | 0.0% | 15.3% |
| 2024 | $1.05 | 0.0% | 0.0% | 14.2% |
| 2023 | $1.05 | 0.0% | 0.0% | 13.9% |
| 2022 | $1.05 | -7.0% | 0.0% | 15.5% |
FAQ
6 questionsSOJE Investor Questions
Common questions answered from live analyst data and company financials.
01Is Southern Company (The) Series 2 (SOJE) stock a buy or sell in 2026?
Southern Company (The) Series 2 (SOJE) has limited published analyst coverage at this time. The model scenario range runs from $7 to $37 around a current price of $17. Use the scenario targets and valuation multiples on this page as a guide.
02Is Southern Company (The) Series 2 (SOJE) stock overvalued in 2026?
SOJE trades at 3.8x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
03What are the main risks for Southern Company (The) Series 2 (SOJE) stock in 2026?
The primary risks for SOJE in 2026 are: (1) Insider Selling — Key executives at Southern Company have sold $27. (2) Market Sentiment — The near and mid-term market sentiment for Southern Company is weak, which could negatively impact its long-term outlook. (3) Interest Rate Sensitivity — Southern Company relies heavily on debt financing for its capital-intensive projects. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
04What is Southern Company (The) Series 2's revenue and earnings forecast?
Analyst consensus estimates SOJE will report consensus revenue of $31.4B (+6.4% year-over-year) and EPS of $4.28 (+9.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $33.5B in revenue.
05When does Southern Company (The) Series 2 (SOJE) report its next earnings?
A confirmed upcoming earnings date for SOJE is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
06How much free cash flow does Southern Company (The) Series 2 generate?
Southern Company (The) Series 2 (SOJE) had a free cash outflow of $3.3B in free cash flow over the trailing twelve months — a free cash flow margin of 11.1%. SOJE returns capital to shareholders through dividends (15.8% yield) and share repurchases ($0 TTM).